Fed Governor Milan: The necessity to support a 50 basis point rate cut has diminished.

According to Deep Tide TechFlow news, on December 22, The Federal Reserve Board of Governors member Milan stated that as the recent adjustments to monetary policy progress, the necessity for a 50 basis point rate cut that he previously advocated has weakened. Milan pointed out that there were some abnormal fluctuations in the previous inflation data, partly related to the government shutdown. These abnormal signals indicate that the Fed's policy stance should adjust toward a more accommodative direction. He emphasized that there is currently no risk of the economy falling into recession in the short term, but believes that the neutral interest rate level has clearly moved down, and monetary policy must reflect this structural change. If the policy rate fails to be continuously lowered to align with the new neutral level, it may actually increase the risk of the economy falling into recession. Additionally, regarding his tenure, Milan candidly admitted that he is uncertain whether he will stay on. He stated: If by the end of January there is still no confirmed successor, I will assume that I will continue to serve. (Jin10))